GBP/USD is doing some preparations around 1.7120

FXStreet (Moscow) - GBP/USD opened the day at 1.7119, slid to 1.7110, rebounded above 1.7120, but edged lower to 1.7110 at the moment.

Two BOE’s obessions

Although we already got used to sleeping markets during the summer this week may change everything, and throw the majors out of the range. And it may be true for the pound specifically, as the key inflation and employment reports are on tap. We know that the BOE is obsessed with labor market spare capacities, and closely monitors the development there. So, if the reports scheduled for release this week show rising employment, or wage inflation, or average hours worked it may fuel the expectations of earlier tightening, and support the pound. The initial target to the upside may lie at 1.7147 followed by 1.7181.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.7119, with support below at 1.7085, 1.7057, and 1.7023 with resistance above at 1.7147, 1.7181, and 1.7209. Hourly Moving Averages are mixed, with the 200SMA at 1.7139, and the daily 20EMA bullish at 1.7065. Hourly RSI is bearish at 46.